Don indicated at the outset of the meeting that because of a desire to have
the President's Budget Advisory Committee (PBAC) meet more regularly in 1995-1996
and that because of difficulty in coordinating meetings with the President's
schedule, the President had delegated responsibility for chairing the Committee
to the Provost and the Vice President for Administration and Finance.

Don further indicated that the President had agreed with the concept of expanding
the membership of the PBAC in order that the thoughts of both the Academic
Affairs Redesign Coordinating Committee (AARCC) and the Campus Reengineering
Committee (CRC) could be incorporated into PBAC discussions. Consequently,
Don commented that he and Vice-President Furukawa Schlereth believed that the
appropriate method to accomplish this objective was to add to the PBAC, the
AARCC/CRC Conference Committee. Don indicated that he and President Arminana
would take the necessary steps with the Academic Senate to sanction the expansion
of the PBAC in this fashion.

Turning to the Agenda, Don informed the PBAC that while final budget figures
had not yet been received from the CSU, the University's financial staff had
developed a preliminary projection of what new funds were likely to come to
SSU in 1995-1996. As this information was being distributed by Furukawa-Schlereth,
Bill Barnier requested that, for future meetings, appropriate handouts be distributed
prior to the meeting time to permit Committee members the opportunity to study
the data prior to discussion. Furukawa-Schlereth indicated that this would
be done.

Furukawa-Schlereth took the Committee through the handout (reproduced below)
reflecting first on the preliminary recommendation with respect to the utilization
of existing general funds.

Utilization of Existing Campus Funds

Fund

Amount

Surplus Benefits

$245,000

Finances

Risk Management Pool

$132,000

Risk Management Deductible

$70,000

Addition to Utility Budget

$25,000

TOTAL

$227,000

Campus Reserve

$300,000

Plus Health Center Subsidy

$100,000

TOTAL

$400,000

Finances

Public
Affairs

$110,000

Systems
Analyst, AFD

$67,500

Clerical
Support, Development

$35,000

Campus
Reserve

$187,500

TOTAL

$400,000

Note that "Campus Reserve" includes allocations for the University Scholars Program and items deemed necessary
by the President throughout the fiscal year.

Specifically, Furukawa-Schlereth indicated that employee benefits in 94-95 had
generated a surplus some portion of which the financial staff believed would
materialize again in 1995-1996. He also indicated that to date, three new expenses
in the University-wide budget category had been identified. These new items included
that CSU mandated Risk Management Pool along with its associated deductibles
and the need to add $25,000 to campus utility budget. He also indicated that
the campus could eliminate the University Reserve and finance growth in Public
Affairs,, Development, the University Scholars Program and a Systems Analyst
position in Administration and Finance (or committed expenses for management
consultants) in this fashion. He did indicate, however, that that the absence
of a Reserve could pose problems in 1995-1996 which might be offset by the presence
of the Risk Management Pool.

Moving to the projection of new funds for SSU (outlined below) Furukawa-Schlereth
stressed that the projection was (a) still preliminary and (b) lower than the
CSU projection of new funds as a result of lower revenue receipt projections
by the campus than that of the System. After discussion, the PBAC agreed by consensus
that it was prudent to accept the campus-based revenue projection.

New Funds from CSU

Fund

Amount

New funds from CSU

$1,364,107

Federal Government Reimbursement

$45,000

TOTAL NEW FUNDS

$1,409,107

Less Mandated Payments

Federal Work Study

$45,000

Compensation Increase

$886,916

Workers Compensation

$319,838

Computer Maintenance

$15,894

Benefit Cost Increase

$32,901

GAAP Audit

$17,000

Final Subsidy: Health Center

$50,000

TOTAL

$1,367,549

NET NEW FUNDS TO SSU

$41,558

One-Time Funds, 94-95 Excess Fees

$56,443

One-Time Funds, Foundation Profit

$225,000

One-Time Funds, Lottery

$169,000

TOTAL NEW FUNDS

$492,001

Note that "New Funds from CSU" differs from CSU budget projection due to lower revenue projections by SSU financial staff

Furukawa-Schlereth indicted that as result of legislative action and Governor
approval, a proposed 10% increase in the State University Fee would not materialize
in 1995-1996. In its place, a 3% increase in the general fund appropriation had
been provided by the State. The net impact of this action was a loss to the CSU
of about $10,000,000. When combined with a variety of new mandated costs, most
notably, a compensation increase, very little new money would be available on
campus in 1995-1996. Furukawa-Schlereth did indicate that while the end result
of the budget cycle for 1995-1996 was disappointing, some additional new one-time
money had been identified including one-time residual dollars in the Lottery
Program along with excess fees from the 1994-1995 fiscal year and unanticipated
projected profit of $225,000 from the Academic Foundation in 19941-1995. At the
conclusion of his presentation, Furukawa-Schlereth moved that the PBAC recommend
to the President that total new funds not necessary for mandated or committed
expenses be allocated to the Provost and that any additional resources identified
as the budget situation clarified also be moved to Academic Affairs. A second
to the motion was made by Dennis Harris.

Farish spoke in favor of the motion citing pressing financial challenges in Academic
Affairs identified by the Academic Affairs Redesign Coordinating Committee. Link
raised the question of the whether the decentralized housing program might be
used to help further support campus needs and suggested the need for a review
of all campus funds. Farish commented that the future of role of the PBAC was
to examine the campus budget in a more comprehensive fashion in order that all
the needs of the campus could be understood and evaluated.

Cinquini called the question which was seconded by Harris. The Committee unanimously
approved Furukawa-Schlereth's motion.

Furukawa-Schlereth then moved that the PBAC recommend to the President that the
general fund support of $100,000 to the Student Health Center be terminated effective
December 31 1995. The motion was seconded by Dennis Harris and discussion ensued
on several points. including whether the Student Health Center fee would increase
as a result of this action. The recently released Health Center Reengineering
Report was cited as a mechanism for Student Affairs to consider in order to avoid
a fee increase. Vice-President Link expressed concern about the motion citing
the importance of maintaining general fund support to the Health Center given
its very high student use and its popularity among the student body.

Terrill then moved that Furukawa-Schlereth's motion be tabled until information
could be obtained that would clarify whether the Student Health Center fee would
rise as a result of the removal of general fund support. Link seconded Terrill's
motion. After considerable discussion focusing on the need for greater information
about the impact of the loss of general fund support, the vote to table Furukawa-Schlereth's
motion failed.

Returning to the Furukawa-Schlereth motion, the PBAC continued its discussion.
Farish cited the need for resources to meet enrollment while Merrill indicated
that he remained troubled by the need for more information regarding the impact
to the Health Center. Terrill suggested that the presence of general fund support
through 12-31-95 provided the Health Center with six months to restructure and,
if necessary, return to the PBAC if any identified negative impact on students
could not be minimized. Harris called the question and motion passed with no
abstentions, 5 positive votes and 2 negative votes.